Kevin Warsh is set to be sworn in as the next chair of the US Federal Reserve Board of Governors on Friday. The US Senate voted largely along party lines on Wednesday to confirm Warsh as the next Fed chair, succeeding Jerome Powell. Trump nominated both Fed governors in different terms but has repeatedly pressured the Fed chair to lower interest rates, saying the current chair "should be lowering interest rates." Prediction market platforms like Kalshi are offering 38.2% odds on rate cuts before 2027, down from 96% in February, while CME FedWatch shows a 98.8% probability that the Fed will not change its interest rates—currently at 3.50% to 3.75%—until the end of June.
## Rate Cut Expectations
As Fed chair, Warsh will have significant influence in helping policymakers determine federal interest rates. Trump previously said in April he would be disappointed if Warsh did not immediately move to cut rates if confirmed. The next meeting of the Federal Open Market Committee, at which interest rates could be changed, is scheduled for June 16.
At Warsh's confirmation hearing in the Senate Banking Committee, Massachusetts Senator Elizabeth Warren raised concerns about potential conflicts of interest, noting that confirming him could result in the Fed "granting special accounts to [the Trump family's] crypto company or bailouts to his friends on Wall Street if they get into trouble." Warsh disclosed more than $100 million in assets ahead of the April hearing, including investments in AI and crypto companies.
## CFTC Nominations Pending
With Warsh set to be sworn in on Friday, lawmakers are still awaiting Trump to announce nominations for the US federal commodities regulator, the Commodity Futures Trading Commission (CFTC). Since December, the CFTC has been led solely by Michael Selig, Trump's pick who took over from acting chair Caroline Pham.
On Friday, the Republican and Democratic leaders of the House Committee on Agriculture called on Trump to "nominate a full panel" of CFTC commissioners, citing "urgent regulatory issues." The lawmakers specifically voiced concerns about CFTC rulemaking if the Digital Asset Market Clarity Act (CLARITY), a bill to establish market structure for cryptocurrencies, becomes law.
